A significant milestone in African trade integration has been achieved, with the African Continental Free Trade Area (AfCFTA) finalising rules of origin for 92% of traded products. This breakthrough establishes clear tariff and origin requirements for the majority of goods traded across the continent, enhancing predictability and simplifying cross-border commerce.
Cynthia Gnassingbe-Essonam, Senior Advisor to the Secretary-General of the AfCFTA Secretariat, made the announcement during a high-level webinar hosted by LIMA Partners in collaboration with Andersen in Ghana. She highlighted that the only sectors still under negotiation are the automotive and textile industries, which account for the remaining 8%.
“The AfCFTA is no longer just a vision—it is now a functioning framework reshaping trade across Africa,” Gnassingbe-Essonam emphasized.
Despite AfCFTA being the world’s largest free trade area by membership—connecting 1.5 billion people in a combined US$3 trillion market—many businesses are still uncertain about how to engage with it. The webinar, titled “Unlocking Opportunities across Africa: Harnessing AfCFTA for Business Growth,” aimed to clarify these opportunities and empower regional businesses.
Gnassingbe-Essonam revealed that Afreximbank has allocated US$1 billion specifically to support the automotive industry, signalling strong institutional backing for sector-specific growth under AfCFTA.
Although trading officially began under AfCFTA terms on January 1, 2021, unresolved issues regarding rules of origin previously hindered smooth implementation. The new agreement resolves this for approximately 3,800 tariff lines, or 87.7% of the goods included in the trade pact.
This standardisation is expected to streamline trade across African borders by eliminating conflicting rules and enhancing transparency for businesses.
AfCFTA is also actively developing an online system to monitor and eliminate non-tariff barriers (NTBs), further reinforcing efforts to create a unified and efficient intra-African trade environment.
